Condominium Approvals

Sometimes Trickier than Buyers Expect

Did you Know?

Fannie Mae and Freddie Mac condo questionnaires have, since January 2022, included questions about the structural soundness of the buildings.

Why is this important?

Fannie and Freddie guidelines establish what are ‘conforming loans’, which determine their liquidity for sale in the secondary market. Fannie and Freddie back as much as 70% of the mortgage loan market.

The problem is that the condo boards typically don’t have the expertise to answer these questions.

Some HOAs have commissioned engineering reports that can satisfy the underwriting standards, but many have not.

We recently had a purchase held up as the buyer had to shift to one of our trusted mortgage partners that was able to get a waiver for the engineering for this specific property.

Questions about a building you are looking to buy in?

Let’s discuss the details so you can be prepared.

Best, Rich